The proposed Simplified Stagflation Index (SFI) is based on two numbers that are released to the public every month by the U.S. Bureau of Labor Statistics.
The SFI is calculated as follows:
SFI = (AHE-CPI) X 100
SFI = Simplified Stagflation Index
AHE = Percent change in Average Hourly Earnings*
CPI = Percent change in Consumer Price Index*
The difference is then multiplied by 100 to produce a number a little easier to visualize. Read more…